Chameleon Gems is a puzzle shooter game wherein the player is tasked to shoot colored balls before those balls go on a dead end. There is a chameleon-like object at the center of a long line of marble gems that are of different colors. Players must shoot a colored gem into the line. If the player matches 3 gems of the same color, they will disappear on the line. If they don't, the line will only grow longer. The player must completely remove all the gems in the line by shooting them.
When a level is finished in Chameleon Gems, the player earns money. This money can be used for buying in-game items. These in-game items are powerups that can be used in the next levels. Some of these powerups are the "fireball" that burns gems, the “rainbow gem” that can match with any colored gems, and also "rollbacks" that can roll back the line of gems. The prices of these powerups range from cheap to expensive. The player must save some money if he wants to buy the more powerful powerups that can be used in the game.
Chameleon Gems can be played up to the 105th level. The only mode of gameplay - single-player - allows the player to play from one level to the next.